Exxon shares rise as earnings hit, oil major shakes up reporting structure

Exxon Mobile (XOM) reported fourth-quarter earnings that topped Wall Street estimates before the market opened on Tuesday.

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Appropriations: FactSet analysts estimated that Exxon earnings would increase to $ 1.95 per share from just three cents in the quarter last year. Revenue was expected to nearly double to $ 85.1 billion.

Results: Exxon earnings per share of $ 2.05 on a turnover of $ 85 billion. Turnover of $ 84.97 billion increased by more than 82%, but there was not much consensus.

Investments rose to $ 5.8 billion, in line with guidance. Cash flow from operations reached $ 48 million, the highest level since 20212, according to the company.

Oil equivalent production was 3.8 million barrels per day, up 2% from year to year. Permian production volumes increased by almost 100,000 bpd, on increased capital efficiency

Exxon sees capital expenditures of $ 21 to $ 24 billion for 2022, up from $ 16.6 billion in 2021. The company launched a $ 10 billion share repurchase program.

Storage: The shares rose 1.8% to 77.30 in pre-market trading on the stock market today. Exxon shares broke out of a cupbase with an entry point of 66.48 on January 5, according to MarketSmith chart analysis. It is now expanded and outside the purchase area.

The recent stock action marks a new step in the upswing since last year when oil collapsed. As a result, the Exxon stock lost its status as a Dow Jones Industrial Average after 90 years.

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Exxon Stock streamlines operations amid rising oil prices

Exxon announced on Monday that it would reorganize into three business units, combining its chemicals and refining into a single reporting segment, to cut costs. The change will take place on 1 April. And the company plans to relocate its headquarters from Irving, Texas, to Houston by mid-2023.

The strategy is the latest and greatest maneuver in Exxon’s efforts to cut $ 6 billion from its annual costs, with 2019 spending as a starting point.

A statement from the company said that the oil giant’s three reporting units will include upstream, product solutions and low carbon. Upstream will involve production or oil and gas. Product solutions will refine and produce fuel and chemicals.

The low-carbon unit currently involves the company’s carbon capture and sequestration work. The unit has explored the concept of multi-user CCS “hubs” in industrial areas located near geological storage sites, such as depleted oil and gas reservoirs.

“We believe the time has come for large-scale US cooperation between governments at all levels, private industry, academia and local communities to create an ‘innovation zone’ approach to dramatically accelerate CCS progress,” ExxonMobil Low Carbon Solutions President Joe Blommaert said in a post on the company’s EnergyFactor blog page.

Climate problems

The measures emphasize that problems related to climate change are likely to remain at the heart of investors.

On January 18, the oil giant promised to have zero carbon emissions from operations by 2050. But the promise did not include emissions from consumers who use oil and other fossil fuels.

The promise comes after Engine No. 1 was given a seat on Exxon’s board last year, and worked to force the oil major to take a more proactive approach to climate change, which the activist investor believes will have major consequences for the Exxon share.

Chevron reported mixed results for the fourth quarter on Friday, despite the oil price reaching its highest level in seven years during the quarter. The uncertainty in demand is still in the middle of the spread of the omicron Covid-19 variant and is a major headwind to the oil price outlook.

Royal Dutch Shell (RDSA) revenues are scheduled for February 3rd. BP (BP) will report February 8th. US exploration and production companies are also in print in early February.

In other news about oil stocks, OPEC + will meet on Wednesday to decide production for March. Russia, which has joined the Organization of the Petroleum Exporting Countries to form OPEC +, is gathering troops on the border with Ukraine, increasing market uncertainty.

As with other oil stocks to buy and look at, Exxon stocks typically rise and fall with crude oil prices. So even when the Exxon stock looks good based on fundamentals and technical factors, crude oil prices can suddenly fall and also take the stock down.

Follow Gillian Rich on Twitter for energy news and more.

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